PRG accepts shares likely to be suspended from Monday

PRG Group said today it accepted its shares would be suspended from Monday until probably later this month.

The stock exchange announced that unless it received PRG's audited annual result to March 31 by Friday, PRG shares would be suspended on Monday.

On May 30, PRG Group released unaudited financial results for the year to March 31 and said it expected audited results by June 30.

However, last week it said there would be further delays in getting the result audited.

It said that was due to a delay getting an audit of its former Finance Group, which has been sold to GE Finance for $145 million.

PRG last week sought a waiver from NZX Regulation to avoid suspension, but NZX declined the application.

PRG chief financial officer Paul Elliott said it was now extremely likely the stock would be suspended.

He said it was disappointing, although the company understood NZX's reasoning.

The final price GE paid would depend on the audit, and until that was determined, PRG could not complete its result. PRG has said it would make a $75m profit of the sale of its finance arm.

PRG lost $13.1m in the March year, mainly due to the continued poor performance of British electrical goods chain PowerHouse.

PRG shares were today steady on $1.54 - their lowest level in over five years and half their value reached in September 2002.

Over 80 per cent of PRG is owned by entrepreneur Eric Watson's Logan Corporation.

- NZPA